They have no interests in the property and if I can gain ownership will move out without hassle for a nominal fee.

The IRA is subject to generally nominal taxation on the portion of the income it receives that is attributable to the non-IRA - borrowed - money.When the IRA engages in a trade or business on a regular or repeated basis, then Unrelated Business Taxable Income (UBTI) is generated. 

Your FHA mortgage insurance rate is 0.85%, added to your nominal interest rate of 3.75% that puts you at 4.6% effective interest rate.

The purchase price can not be nominal or- your really a lender and thus subject to the safe act. 

This includes nominal amounts for even a credit check or appraisal.

It is feeling like my own high bid is simply being used as a marker for the listing agent to tack on a nominal amount and award the property to his own buyer. 

They don't have much meaning when the numbers are nominal.

Make sure you are able to make changes to the listing after it has been posted for a nominal fee.3.

It depends what is your history with them if you had a two year tenant who had a bump in the road and is catching up vs someone with  6 month history not catching up or making nominal payments.

And your local property taxes will go up, having lost the homestead exemption, likely erasing any income tax benefits.If you decide to proceed anyway, you have to play that game carefully:you need to formally acquire the house and pay a fair market pricethe rent has to be fair market rent, not some reduced nominal amountand a lot of other little details,Bottom line: I would not recommend it, despite a small tax savings opportunity.